ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer

ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer

ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer  (Question 1 to 5)

ISC Economics Consumer Behaviour and Consumer's Equilibrium MCQs With Solved Answer
ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer

1. Law of diminishing Marginal Utility is also known as:

(a) Gossen’s First law of consumption.
(b) Fundamental law of satisfaction.
(c) Fundamental Psychological law .
(d) All of these

2. Law of Equi-Marginal Utility is also known as:

(a) law of Substitution
(b) law of Maximum satisfaction.
(c) Gossen’s Second law
(d) All of these

3.Oridinal Utility approach is also known as:

(a) Indifference curve Analysis
(b) Hicksian Analysis
(c) a and b

4. Cardinal Utility approach is also known as:

(a) Marshall’s Utility approach
(b) Marginal Utility approach
(c) a and b

5. Cardinality means Utility can be: 

(a) Measured.
(b) Ranked.
(c) Not Measured.
(d) None of these.

Note: Answers are ginen below at the end.

Issue of debentures MCQs with solved Answers

ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer  (Question 6to 10)

ISC Economics Consumer Behaviour and Consumer's Equilibrium MCQs With Solved Answer
ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer

6. Oridinality means Utility can be 

(a) Measured.
(b) Ranked.
(c) Not Measured.
(d) None of these.

7. In case of Cardinal utility approach Utility is measured in: 

(a) Rupees.
(b) Ranks.
(c) Utils.
(d) None of these.

8. Which of these is not a property of indifference curve? 

(a) Indifference curve is concave to the origin.
(b) Two indifference curves cannot intersect each other.
(c) Higher indifference curve represents higher level of satisfaction.
(d) Indifference curve slopes downwards.

9. Indifference curves are convex to the origin because of:

(a) Law of Equi-Marginal Utility.
(b) Diminishing MRS.
(c) Law of Diminishing Marginal Utility.
(d) Increasing MRS.

(e) law of Maximum satisfaction.

10. According to the Law of diminishing marginal utility, satisfaction obtained from consumption of successive unit:

(a) Increases.

(b) Remains same.

(c) Decreases.

(d) Either increases or decreases.

Note: Answers are ginen below at the end.

ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer (Question 11 to 15)

ISC Economics Consumer Behaviour and Consumer's Equilibrium MCQs With Solved Answer
ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer

11. Indifference Map refers to: 

(a) Lowest Indifference curve.
(b) Highest Indifference curve.
(c) Family of Indifference curves.
(d) Middlest Indifference curve.

12. Budget set includes:  

(a) All those combinations of two goods which a consumer cannot afford.
(b) All those combinations of two goods which a consumer is willing to buy.
(c) All those combinations of two goods which a consumer can afford.
(d) All those combinations of two goods which a consumer aiready possesses.

13. An indifference curve always? 

(a) Upward sloping straight line passing from the origin.
(b) Slopes downwards from left to right.
(c) Is parallel to X-axis.
(d) Indifference curve slopes downwards from right to left.

(e) Is parallel to Y-axis.

14. Utility:

(a) Differs from person to person.
(b) Differs from time  to time.
(c) Differs from place to place.
(d) All of these.

15. Indifference curves are:

(a) Upward sloping straight line passing from the origin.

(b) Concave to the origin.

(c) Convex to the origin.

(d) None of these.

Note: Answers are ginen below at the end.

ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer (Question 16 to 20)

ISC Economics Consumer Behaviour and Consumer's Equilibrium MCQs With Solved Answer
ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer

16. Slope of indifference curve measures by the: 

(a) Budget line.
(b) MRS.
(c) MRT.
(d) None of these.

17. What happens to Marginal utility when Total utility is maximum:  

(a) Marginal utility is negative.
(b) Marginal utility is Zero.
(c) Marginal utility is decreasing.
(d) Marginal utility is increasing.

18. What happens to Marginal utility when Total utility is decreasing:  

(a) Marginal utility is negative.
(b) Marginal utility is Zero.
(c) Marginal utility is decreasing.
(d) Marginal utility is increasing.

19. The consumer is in equilibrium at a point where the budget line:

(a) Is below an indifference curve.
(b) Is above an indifference curve.
(c) Cuts an indifference curve.
(d) Is tangent to an indifference curve.

20. Market rate of exchange also denotes:

(a) Slope of PPC
(b) Slope of Budget Line.
(c) Slope of Indifference Curve
(d) None of these.

Note: Answers are ginen below at the end.

ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer (Question 21 to 25)

ISC Economics Consumer Behaviour and Consumer's Equilibrium MCQs With Solved Answer
ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer

21. When marginal utility is zero, total utility is:

(a) Zero
(b) Minimum
(c) Maximum
(d) Negative

22. Which of the can be referred to as ‘point of satiety’?

(a) Marginal utility is negative
(b) Marginal utility is zero
(c) Total utility is rising
(d) Total utility is falling

 

23. Which indifference curve represents the highest level satisfaction?

ISC Economics Consumer Behaviour and Consumer's Equilibrium MCQs With Solved Answer
Indifference curve

(a) IC1
(b) IC2
(c) IC3
(d) None of these

24. Which indifference curve represents the lowest level satisfaction?

(a) IC1
(b) IC2
(c) IC3
(d) None of these

25. Budget line shows:

(a) Possible combination of two goods that a consumers can buy by spending his entire income at the given prices.
(b) Possible combination of two goods which cost less than or equal to consumer’s money income.
(c) Possible combination of two goods among which the consumer is indifferent.
(d) None of these.

ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer

ISC Economics Consumer Behaviour and Consumer's Equilibrium MCQs With Solved Answer
ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer

Answer – Question Number 1 To 25 

1. Answer- (d) All of these

2. Answer- (d) All of these

3. Answer- (c) a and b

4. Answer- (c) a and b

5. Answer-(a) Measured.

6. Answer- (b) Ranked.

7. Answer- (c) Utils.

8. Answer-(a) Indifference curve is concave to the origin.

9. Answer-(b) Diminishing MRS.

10. Answer-(c) Decreases.

11. Answer-(c) Family of Indifference curves.

12. Answer-(c) All those combinations of two goods which a consumer can afford.

13. Answer-(b) Slopes downwards from left to right.

14. Answer-(d) All of these.

15. Answer-(c) Convex to the origin.

16. Answer-(b) MRS.

17. Answer-(b) Marginal utility is Zero.

18. Answer-(a) Marginal utility is negative.

19. Answer-(d) Is tangent to an indifference curve.

20. Answer-(b) Slope of Budget line.

21. Answer- (c) Maximum

22. Answer- (b) Marginal utility is zero

23. Answer- (c) IC3

24. Answer- (a) IC1

25. Answer- (a) Possible combination of two goods that a consumers can buy by spending his entire income at the given prices.

ISC Economics Consumer Behaviour and Consumer’s Equilibrium MCQs With Solved Answer

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